Difference between Corporate Medical Insurance and Family-floater Insurance

The new year has started and so does the financial planning of people as per their requirement. Looking at the huge inflation rate and the rising cost of healthcare treatments, it is prudent to buy a medical insurance policy for you and your closed ones.

However, when buying a health insurance plan people working in the corporate sector get confused. Since corporate employees could avail corporate health insurance plans for their family, they find it difficult to decide whether to avail the benefits of a corporate plan or to go with a family-floater health insurance plan.

Most people are of the opinion that corporate insurance policies are sufficient for the entire family, while the fact is there is a huge difference between the corporate health plans when compared to family floater health insurance policies.

What is a Corporate Health Insurance?

Corporate health insurance plans are policies that allow coverage to a group of individuals who are employees of a company. It is also called Group Health Insurance.

So, how does corporate health insurance work? Under a corporate health plan, the same coverage benefits are offered for the entire corporate entity for different needs such as accidents, illness, surgeries, hospitalization, and so on.

What is a Family-Floater Health Insurance?

Family floater health insurance meaning implies that the policy sum insured under this plan is not fixed for one member.  Thus, the policy allows the insured and his/her family a wide option of coverage. The plan is cost-effective as one plan covers all the members of the family. A family-floater plan covers the insured, his/her spouse, 2 children as well as parents. Some plans also cover parents-in-law as part of the plan.

The premium of family floater plans depends on different factors such as;

• Number of people covered under the policy
• Policy coverage extent
• Policy sum insured
• Age of the members under the policy

Difference between Corporate Health Insurance and Family-Floater Health Insurance

Here are the key points of difference between corporate and family-floater health insurance plans:

Parameter	Corporate Health Insurance	Family Floater Health Insurance
Meaning	A corporate medical insurance plan covers the employees of an organization and their dependents under the plan	A family-floater health insurance policy covers the members of a family under a single plan.
Who is covered?	Employees of an organization and their dependents	The policyholder, spouse, dependent parents and up to 2 dependent children
Eligibility	Employee is eligible till he/she is working with an organization	Anyone above the age of 18 can buy a family floater health insurance policy
Premium	Premium of a corporate health insurance policy is paid by the employer. Employees may have to pay for some additional coverage	The policyholder pays the entire premium amount
Tax benefits	The employee can claim for tax benefits only if he/she pays the premium from his/her own pocket	The policyholder can claim for tax deductions under section 80D of income tax act.
Exit Policy	For corporate health insurance plans, the exit criteria are retirement from job, termination, or switching/leaving job etc.	For family-floater plans, the exit criteria include, if the policyholder reaches the exit age as per the term of the policy. If the policyholder fails to renew the plan on time or if the person dies.
Claim Settlement	Done through TPA appointed by the insurer	Can be done via TPA or directly by getting in touch with the insurer
Benefits	– The premiums of corporate health insurance plans are paid by employers   – Claims get processed on priority basis	– Being a single health insurance plan for all family members, it becomes easily manageable   – Premium cost is low – No need to buy separate health plan for parents
Disadvantages	– You cannot customize the corporate medical insurance plan   – The plan will cease to exist if you leave the job	– the sum insured is shared by all family members   – It might run out if more members require hospitalization within a policy year